Category: Top Stories

Australia: Wesfarmers Selling Kmart Tyre and Auto Service to Continental

Australia-listed conglomerate Wesfarmers today announced it has agreed to sell its Kmart Tyre and Auto Service (KTAS) business to Continental AG for $350 million.

On successful completion of the transaction, Wesfarmers estimates it will report a pre-tax profit on sale of approximately $270 million to $275 million, subject to completion adjustments.

The sale is subject to certain consents and approvals including from the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

KTAS is one of Australia’s largest tyre, automotive service, and repair retailers. The business has 258 stores in Australia with over 1,200 employees. It is also the largest single employer of apprentice motor mechanics in Australia.

Continental, based in Germany, will use the KTAS name and logo for a transitional period following the sale. Its five divisions in 2017 generated sales of €44 billion and it currently employs more than 243,000 people in 60 countries.

Continental’s Tire division is a technology leader in tyre production and offers a broad product range for passenger cars, commercial vehicles, and two-wheelers.

Its product portfolio also includes fleet applications, as well as digital management systems for commercial vehicle tyres.

Wesfarmers Managing Director Rob Scott said the agreement to sell KTAS crystallises value for shareholders from the business turnaround since it was acquired as part of the Coles Group in 2007.

“We believe that the divestment is in the best interests of Wesfarmers’ shareholders, while giving the employees and customers of KTAS the opportunity to join a highly complementary business in Continental. Continental’s automotive industry expertise will further strengthen the business’ customer offering,” Scott said.

Subject to satisfying conditions precedent, the divestment of KTAS is expected to complete in the first quarter of the 2019 financial year.

Last week, Wesfarmers also announced it has agreed to sell its 40 per cent interest in the Bengalla Joint Venture to its joint venture partner New Hope Corporation (ASX:NHC) for $860 million.

On successful completion of the transaction, Wesfarmers expects to report a pre-tax profit on sale of approximately $670 million to $680 million subject to completion adjustments.

Also Read: Keppel Capital To Launch A$1bn Wholesale Property Fund in Australia

Bengalla is currently owned 40 per cent by Wesfarmers, 40 per cent by New Hope, 10 per cent by Taipower and 10 per cent by Mitsui. The transaction is subject to regulatory approval and pre-emption rights under the Bengalla Joint Venture Deed. The sale of the interest in the Bengalla Joint Venture is expected to close in the fourth quarter of 2018. – AsiaPEVC.com

Keppel Capital To Launch A$1bn Wholesale Property Fund in Australia

Singapore’s Keppel Capital Ventures has partnered with Vicinity Centres (Vicinity), a retail property group listed on the Australian Securities Exchange, to establish a new private fund in Australia.

The proposed fund intends to invest in an initial A$1 billion ($740 million) portfolio of Australian retail properties currently owned by Vicinity. The MOU is subject to due diligence, definitive documentation and final board approvals of both parties.

Keppel Capital Ventures is a wholly-owned subsidiary of Keppel Capital Holdings, the asset management arm of Keppel Corporation Limited.

The parties intend to manage the proposed fund through a joint venture where Keppel Capital and Vicinity will each hold a 50 per cent stake.

“Vicinity is expected to initially inject approximately A$1 billion of retail assets located across five Australian states into the proposed fund, and continue to provide property and development services for these assets,” Keppel said in a disclosure to the Singapore Exchange Monday.

Each party is expected to initially hold up to a 10% equity interest in the proposed fund, which is targeted to close by the end of the first quarter in 2019.

The ongoing investment strategy of the proposed fund will be to own, acquire and grow a diversified portfolio of Australian retail assets with stable yields and potential long-term capital growth, underpinned by high occupancy rates, balanced lease expires and a diversified tenant base predominantly focused on non-discretionary spending.

“The proposed fund will benefit from Keppel Capital’s extensive investor network and Vicinity’s strong capabilities in the retail sector in Australia,” Keppel said.

As one of the largest retail property managers listed on the Australian Securities Exchange, Vicinity has a fully integrated asset management platform and A$26 billion in retail assets under management across 81 shopping centres.

“The proposed fund, which will be Keppel Capital’s first retail-focused real estate fund, will expand our track record in Australian real estate investments beyond office developments to include retail properties,” said Keppel capital CEO Christina Tan.

Also Read: Singapore: Keppel Offshore & Marine Secures $51m Contract

For Vicinity CEO and Managing Director Grant Kelly, global investors view the Australian retail property market favourably, with its transparency, stable and growing economy, and strong population growth particularly attractive.

“Keppel Capital is an ideal partner for Vicinity, with our aligned objectives of expanding our respective property funds platforms and delivering long-term sustainable growth for partners invested in those platforms,” he said.

Singapore: Cloud Inventory Firm TradeGecko Secures $10M

TradeGecko, a global SaaS inventory and order management platform for small-medium businesses (SMBs), today announced a Series B investment of $10 million, led by TNB Aura Fund 1 and Aura Venture Fund, with Perle Ventures, and 33 Capital participating in the round.

This increases the total capital invested to date to over USD 20M. The proceeds raised will be used to grow TradeGecko’s product suite, providing a seamless commerce platform to thousands of commerce brands, and expanding to empower more commerce businesses around the world.

“In terms of feature-density, user experience, and quality of integrations, TradeGecko is the best-in-class B2B software-as-a-service provider in the inventory and order management space”, said Vicknesh R Pillay, Managing Partner of TNB Ventures and TNB Aura Fund 1. “We are pleased to back this standout player.”

“We see a massive opportunity to provide the back-end systems of SMB commerce on a global scale”, said Cameron Priest, CEO of TradeGecko. “With the rapid growth of SMBs around the world, partnering with Aura enables us to leverage their market knowledge and extensive network. With the latest funding, we will continue to invest in solving our customers most challenging operational challenges.”

TradeGecko was built with the vision of empowering millions of entrepreneurs to build the business of their dreams by providing a back-end platform to run the entire business operations of a growing commerce brand.

With global HQ based in Singapore and North American HQ in Toronto, the company powers the operational back-ends of leading SMB commerce brands including memobottle, Dead Studios, Brooklyn Bicycle Company, Maui and Sons, and Paula’s Choice Skincare.

Also Read: Singapore VC Amasia Backs Skillshare’s $28m Series C

TradeGecko aims to free business owners from the operational complexity of running their business to spend more time building a brand their customers will love.

“The investment into TradeGecko is a great deal for our fund” commented Calvin Ng, Managing Director of Aura Group. “We are confident in the long-term prospects of the company and the team’s ability to continue executing strong and consistent growth of their revenues and unit economics.”

SoftBank’s Vision Fund Leads $121m Funding in Camera Firm Light

Advanced computational imaging firm Light has secured $121 million in Series D funding led by SoftBank Vision Fund and backed by consumer camera giant Leica Cambera AG.

The latest funding round brings Light’s total amount raised from investors to date to $186 million. The SoftBank Vision Fund investment will be made in tranches, subject to certain conditions.

Light’s groundbreaking imaging platform enables machines to see like humans do, using sophisticated algorithms to combine images from multiple camera modules into a single high-quality image and enabling highly-accurate 3D depth extraction.

The company said the new funding will allow it expand the reach of its imaging platform beyond consumer photography and into security, robotic, automotive, aerial and industrial imaging applications.

Later this year, the first mobile phone incorporating Light’s technology will be available to consumers around the world. It will shatter the expectations of mobile photography.

“Light’s technology is a revelation, showing that several small, basic camera modules, combined with highly powerful software, can produce images that rival those produced by cameras costing and weighing orders of magnitude more,” said Dave Grannan, Light CEO and Co-founder.

Grannan added that the support of SoftBank Vision Fund as a strategic investor means “this technology will see more of the world sooner than we could have ever imagined”.

Light’s foundational technologies, including its Lux Capacitor camera control chip and its Polar Fusion Engine for multi-image processing, are licensed for use in applications like smartphones, security, automotive, robotics, drones, and more.

“Light’s highly accurate depth mapping can be used to create rich and complex environments for a wide-range of applications including augmented reality,” the company said in a statement.

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Akshay Naheta, Partner, SoftBank Investment Advisers, describes Light as a world leader in computational imaging.

“By replacing mechanical complexity with digital sophistication, they have been able to drastically reduce the size, weight, and cost of traditional cameras. This has paved the way for a whole new era of intelligent imaging applications,” Naheta said.

Philippines: Pilmico Acquires Singapore’s Gold Coin for $334m

Aboitiz Equity Venture (AEV)’s food subsidiary Pilmico International Pte Ltd (Pilmico International) announced its acquisition of a majority stake in one of Asia’s largest privately-owned agribusiness corporations, Gold Coin Management Holdings Limited (Gold Coin), as it expands its animal feeds business in the Asia – Pacific region.

Pilmico International is a wholly owned subsidiary of AEV through its Singapore-based holding entity, AEV International.

Pilmico International signed a share purchase agreement with British Virgin Islands -based Golden Springs Group, Ltd. (GSG) for 75% equity interest in Gold Coin.

The consideration is based on an enterprise value of US$413 million, which is equivalent to 75% of the total enterprise value of US$550 million. After deducting cash-like adjustments, the final cash consideration is US$334 million. The transaction will be funded through financing from foreign banks.

Pilmico International was chosen as the preferred bidder following a competitive bid selection process for the acquisition of Gold Coin shares from its holding company, GSG. Gold Coin, which is based in Singapore, is a major producer of animal feeds and operates 20 livestock and aqua feed mills across 11 countries in Asia.

“ASEAN’s market size of over 500 million will bring many opportunities to expand our customer base. This acquisition serves as a platform towards achieving Pilmico’s strategy to grow our core feed milling business beyond ASEAN and now across Asia. This acquisition will add three million metric tons of volume which quadruples our overall feeds production capacity.” said Sabin M. Aboitiz, AEV Chief Operating Officer and Pilmico President and Chief Executive Officer.

The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region to date.

Also Read:
Hong Kong: Australia’s CTM Acquires HK-based Lotus Travel Group
On-demand Logistics Platform GoGoVan Raises $250m

Pilmico International’s first ASEAN venture was in Vietnam in 2014 when it bought a 70% stake in Vinh Hoan Feeds (VHF), one of the country’s major aquafeed manufacturer. In 2017, it bought an additional 15% stake in VHF, effectively increasing its stake to 85%.

Driven by its strategy to widen its footprint in Vietnam and diversify product portfolio, in September 2017, Pilmico International bought a 70% stake in Europe Nutrition Joint Stock Company (Eurofeed), an animal feeds manufacturer.

Paktor’s Parent M17 Entertainment Withdraws US IPO

M17 Entertainment, the parent company of Singapore-based dating and networking app Paktor, has officially withdrawn it initial public offering in the New York Stock Exchange after delaying its debut on June 10.

In a statement, M17 Entertainment said it has notified the New York Stock Exchange of its determination to withdraw the American depositary shares representing its ordinary shares from listing.

The decision was inline with previous announcements relating to the postponement of its planned IPO, the company said.

It was in May when M17 Entertainment files for an IPO in the New York Stock Exchange, seeking to raise a total of $115 million.

M17 operates the largest live streaming platform for developed Asia, including the markets of Taiwan, Japan, South Korea, Singapore, and Hong Kong.

According to its filing, the total number of registered users on its dating applications grew to 14.6 million as of March 31, 2018 from 13.9 million and 11.0 million as of December 31, 2017 and 2016, respectively.

Paktor’s last funding round was in November 2016, when it raised $32.5 million from K2 Global and existing investor PT Media Nusantara Citra Tbk.(MNC Media Group), with further participation from new and existing investors. That had brought the total amount the company had raised to $57.5 million.

In March 2017, under a share swap agreement, all of the shareholders of Paktor exchanged their shares for equivalent classes of M17 shares, and M17 became the holding company of Paktor.

Also Read:
South Korea’s ProtoPie Raises $3.5m in KIP-led Series A
On-demand Logistics Platform GoGoVan Raises $250m

In October 2016 and January 2017, Paktor acquired 36.8 per cent and 9.44 per cent of the equity interests of Machipopo, respectively, and in March 2017, under the same share swap agreement through which M17 acquired Paktor, the company also acquired all of the remaining interests of Machipopo by issuing equivalent classes of our shares to the remaining shareholders of Machipopo.

The company’s interactive entertainment platform includes 17 Media, the largest live streaming platform by revenue in Developed Asia with a market share of 19.2 per cent in the first quarter of 2018, according to Frost & Sullivan, and 33.3 million registered users.

Goldman Sachs Backs $55m Series C in Japanese Fintech Startup Paidy

Japanese financial technology (fintech) startup Paidy Inc has announced raising $55 million in a Series C funding round backed by Goldman Sachs. The latest round raised the startup’s total capital to $80 million.

In a statement, Paidy said the Series C was led by Japanese firm ITOCHU Corporation. It will use the fresh capital to launch large merchants, expand into the offline market, and offer additional financial services.

The fintech firm expects to grow its customer base to 11,000,000 accounts by 2020.

Paidy started Japan’s first instant post-pay credit service for ecommerce consumers in October 2014. It requires no pre-registration or credit card to use; Paidy consumers purchase products online using only a mobile phone number and email address (verification is established through a four-digit code via SMS or voice pin-code) and settle a single monthly bill for all their purchases, either at a convenience store, by bank transfer or auto debit.

The startup also also supports multi-pay installments and subscriptions. There are currently over 1,400,000 Paidy accounts in use (June 2018).

“We are extremely honored that Paidy’s business concept was highly valued by one of Japan’s most prestigious business conglomerates, ITOCHU. Through this tie-up, we expect to launch new merchants in order to deliver Paidy’s frictionless and intuitive financial solution to a much broader audience,” said Russell Cummer, Founder and Executive Chairman of Paidy.

Cummer added that Paidy now aims to promote its vision of removing barriers and creating unique consumer experiences to as many people as possible.

Also Read: 
On-demand Logistics Platform GoGoVan Raises $250m
South Korea’s ProtoPie Raises $3.5m in KIP-led Series A

Paidy has proved a powerful means of persuading first time buyers to transact online. Its proprietary models and machine learning mean that transactions are underwritten in seconds, with guaranteed payment to merchants.

Paidy increases merchant revenues by reducing incomplete transactions, increasing conversion rates, boosting average order values, and facilitating easy repeat buying.

On-demand Logistics Platform GoGoVan Raises $250m

Hong Kong-headquartered on-demand logistics platform GoGoVan has announced that it has raised $250 million in its latest funding round, led by US-based venture capital firm InnoVision Capital.

In a statement on its website, GoGoVan said the funding round was also participated by Alibaba’s logistics arm Cainiao, Russia-China Investment Fund, Hongrun Capital, Qianhai Fund of Funds, and 58 Daojia Group.

“We’re proud to announce that GoGoVan has raised $250 million in the first phase of its new round of funding. We will use the new funds to expand our service offering and grow new markets. Also, in the next few months, we will offer a new service type, door-to-door service, to fulfill the demand of small-item segment,” the logistics startup said on its Facebook page.

Established in 2013, GoGoVan is the first app-based platform for transporting goods in Asia. The app GoGoVan was created to connect drivers and customers, and we aim to redefine the everyday logistics experience by providing a convenient and efficient service.

Since its successful July 2013 launch in Hong Kong, GoGoVan has expanded to Singapore, South Korea, China, and Taiwan. The GoGoVan network currently comprises of over 20,000 commercial vehicles and 70,000 registered drivers.

In 2017, GoGoVan and Chinese peer 58 Suyun merged to create a $1-billion logistics heavyweight, thus creating Hong Kong’s first unicorn. Following the merger, the combined entity is known as 58 Suyun in China and GoGoVan outside the country.

Also Read: South Korea’s ProtoPie Raises $3.5m in KIP-led Series A

58 Suyun is the freight business unit of 58 Home, which claims to be China’s largest online marketplace serving local merchants and consumers and holds the majority stake in the combined entity.

The merger was said to create Asia’s only online platform to provide end-to-end on-demand logistics and freight services to both corporate and individual customers.

South Korea’s ProtoPie Raises $3.5m in KIP-led Series A

ProtoPie, an interactive prototyping tool for digital product designers, has raised $3.5 million in a Series A funding round led by Korea Investment Partners (KIP), according to Studio XID, the developer of the design tool.

The Series A financing round was led by KIP with the participation of Kolon Investment and POSCO Venture Capital. Korea Investment Partners are known for backing internet startups Naver known to be the largest unicorn in the Korean peninsula and DoubleU Casino a famous social casino gaming publisher.

Since launching ProtoPie commercially last year and raising a Pre-Series A with venture capital firm Evergreen Investment Partners and the investment arms of international giants Samsung and LINE, the prototyping tool has been experiencing significant growth.

Designers in more than 70 countries at renowned companies like Google, Microsoft, Nintendo, IDEO and Alibaba have integrated ProtoPie in their daily workflow.

“We’re empowering designers to create highly interactive prototypes that are hard to distinguish from the actual digital products they design for. This way, designers can validate ideas easily and quickly while bridging the gap with stakeholders. Nowadays, it’s not just apps and websites on a single screen on your phone or computer. Of course, they still dominate the broad spectrum of digital products,” said co-founder and CEO Tony Kim, who has been with Google prior to becoming an entrepreneur.

ProtoPie allows designers to utilize sensors in smart devices, e.g. tilt, proximity and sound sensors when it comes to highly interactive prototyping. Also, designers can easily create prototypes that can communicate with each other by creating interactions across devices.

Also Read: Singapore’s Radiflow Bags $18M from ST Engineering

An example would be realistically mimicking the way drivers and passengers interact in an Uber-like service. Furthermore, prototypes made in ProtoPie can integrate with external hardware like Arduino or littleBits, allowing the possibilities to be endless. These features allow ProtoPie to be at the forefront of prototyping in the software industry.

Hong Kong: Australia’s CTM Acquires HK-based Lotus Travel Group

Australia’s listed Corporate Travel Management has continued its strategic expansion into the Asian market after acquiring a majority stake in Hong Kong-based Lotus Travel Group Limited (Lotus) in a deal worth AU$50 million (HK$300m).

The purchase of 75.1 per cent of Lotus will take effect from October 2, 2018 and will result in CTM becoming the largest travel management company in Hong Kong servicing Greater China, with a combined Total Transaction Value approaching AU$2.5 billion (HK$15bn).

CTM’s partners in Asia, Ever Prestige Investments Limited (EPI), will acquire the remaining 24.9 per cent through CTM Asia.

The acquisition creates optimum scale for the combined entity to leverage technology, support costs and supplier relationships across a wider base to best enhance long-term sustainable growth in the Asian region.

CTM Managing Director Jamie Pherous said the two firms had a great understanding of each other’s culture and leadership teams, which would allow for a seamless integration process.

“Lotus is a long standing and highly regarded travel leader in Hong Kong. They
meet our strict acquisition criteria and, like CTM Asia, are leaders in travel in the region and enjoy high client and staff retention,” he said.

Having operated for more than 60 years, Lotus is a market leader in Hong Kong across the corporate, B2B, wholesale and MICE markets. It employs 400 staff and has offices in Hong Kong and Greater China.

“We have known the CTM Asia leadership team for many years and have watched CTM Asia build a very strong growth business based on highly personalised service delivery with best-in-class technology solutions,” Chairman and CEO of Lotus Travel Group, Patrick Kong, said.

Also Read: Singapore’s Radiflow Bags $18M from ST Engineering

The acquisition will contribute approximately AU$$4 million (HK$24m) earnings before interest, tax, depreciation and amortisation (EBITDA) over nine months trading to CTM’s 2019 annual results.

Pherous said CTM expected to deliver FY18 results at or slightly above the top end of the previous guidance, at approximately AUD$125m (27% growth on p.c.p).